Jul 02, 2012
R827bn tax collection target setBack
Pretoria|Africa|Projects|Sustainable|Water|Africa|South Africa|Energy|Manufacturing|Service|Services|Transport|Infrastructure|Pravin Gordhan|Water
© Reuse this
Speaking at the official opening of the 2012 tax season, in Pretoria, he said that to ensure sustainable economic growth, larger revenues were required; however, the only way to ensure increased revenue was to grow the economy and create tax-paying-level jobs.
South Africa also required the establishment of more businesses, particularly with an increased commercial base, and an increased production base, especially in manufacturing.
The South African Revenue Service (Sars) is expecting to collect over R827-billion in revenues from the entire South African tax base in the 2012 tax season and R927-billion in 2013.
Total revenue collection grew from R114-billion during the 1994/95 tax season, to over R742.7-billion in 2011. Of this, 12-million South African individual taxpayers, last year, accounted for R251.6-billion, or 33.8% of all revenue collection. Business activities, excise tax, corporate tax, VAT, capital gains and dividends, besides others, contributed the remainder.
At March 2012, South Africa held 13.7-million registered individual taxpayers, a jump from 1.7-million in 1994 and 6-million in 2010.
The number of companies that have registered for income tax had increased from 422 000 in 1994, to more than two-million in the 2011/12 financial year.
There were currently 664 000 registered for VAT in South Africa, up from 397 000 in 1994 Further, the number of registered employers grew from 177 000 in 1994, to a current 385 000.
Gordhan said the country aimed to invest in significant infrastructure projects and other activities to stimulate growth, with R845-billion earmarked for energy, transport, water and telecommunications infrastructure over the coming three years.
“If there is no growth plan accompanying a fiscal [plan], then economies will not be able to work their way out of economic difficulties,” he noted.
The Finance Minister also said that the relationship between government and taxpayers was important for South Africa to host a viable and meaningful democracy.
Every citizen was a part of growing South Africa and ensuring that the country maintained the financial strength and stability to absorb the “formidable” impact of the financial crisis of 2009.
“We have managed over the last ten years to maintain a low debt load, and while gross debt may migrate to 42% or 43% over the next three years, we are still better off than most countries as far as the debt load is concerned,” Gordhan said.
However, he pointed out that the R60-billion revenue lost during the recession had not yet been recovered and that government was working on sustaining its low debt while attempting to deliver services to citizens.
By last year’s deadline a record 4.86-million individuals and trusts had submitted their tax returns on time – 23% higher than the previous year.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Updated 4 hours ago Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...